GDP is the total market value of all final goods and services produced within a country in one year. It has three components: personal consumption, business investment, and government spending. GDP measures the output of goods and services within a country and determines a nation's economic wealth. It is important because it allows measurement of how much money the economy takes in and loses in a year and sets the country's economic status.

1. GROSS DOMESTIC Daria Orekhov
PRODUCT (GDP)

2. WHAT IS GDP?
Total Marketing value of all final goods and
services produced within the borders of a
country in one year.

3. WHAT ARE THE THREE COMPONENTS OF
GDP?
 Personal Consumption
 Gas
 Groceries
 Business Investment
 Residential
 Real Estate
 Non-Residential
 Equipment
 Government Spending

4. WHAT IS THE DIFFERENCE BETWEEN A
FINAL AND A INTERMEDIATE GOOD?
 Intermediate Good
 Used in the production process.
 Final Good
 Goods not used in the process of production.
 Used for final consumption.

5. EXAMPLES OF CONSUMER GOODS AND
SERVICES
 Goods
 Food
 Clothing
 Furniture
 Toys
 Services
 Plumbing
 Hairdresser
 Locksmith
 Dry Cleaner

6. EXAMPLES OF GOVERNMENT PURCHASES
OF GOODS AND SERVICES
 Military
 Weapons
 Road Repair
 Safety
 Fire Fighter
 Police
 Education
 Teachers

7. WHY ARE ALL THESE FACTORS
IMPORTANT WHEN CONSIDERING GDP?
 We can measure how much money the economies take in and
lose in a year.
 Measures the output of goods and services within a country.
 Determines Economic wealth of a nation.

8. HOW DOES GDP CONTRIBUTE TO THE
WEALTH OF A NATION?
 Determining the total market value of all final goods and
services produced within a country in a year.
 Setting an economic status

9. REFERENCE PAGE
 http://www.preservearticles.com/201104115254/difference -
between-intermediary -a-final-goods.html
 http://useconomy.about.com/od/grossdomesticproduct/f/ GD
P_Components.htm